Sharp rupee appreciation challenge for domestic home textile sector: Report

Major players like Bombay Dyeing, Trident, have seen a sharp turnaround in profitability

An appreciating rupee has been posing a major challenge to sustaining growth of domestic textiles industry, which has seen a low turnaround in the past few quarters, mainly due to high raw materials prices.

Major players in this segment, including Bombay Dyeing, Trident and Welspun, have seen a sharp turnaround in their profitability over the past six quarters, despite challenges in domestic demand. This is on account of demonetisation first, and then the recent implementation of the goods and services tax (GST) regime.

Bombay Dyeing, for example, has seen its profitability increasing to Rs 211.36 crore on a turnover of